The key aim of JPMorgan Global Growth & Income (JGGI) is to generate total returns in excess of that of the MSCI ACWI over the long term. The investment managers (Helge Skibeli, Rajesh Tanna and Timothy Woodhouse) look to achieve this by identifying the companies around the world which will be the long-term structural winners from a number of key secular themes.
Since 2016, the trust also aims to pay out at least 4% of NAV in income each year, based on the NAV at the start of the year and paid in quarterly instalments. This can be paid out of capital, which means the investment managers have not had to change their high-conviction, valuation-sensitive approach to stock-picking. It also means the portfolio is considerably different to those of most peers in the AIC Global Equity Income sector because the investment managers can hold companies in high-growth sectors which don’t typically pay high dividends.
Due to the ability to hold growth companies, the trust has a strong track record for capital appreciation relative to the sector. Over the past five years JGGI has significantly outperformed the average trust in the AIC Global Equity Income peer group, as we discuss in more detail in the Performance section.
Since the change in dividend policy in 2016, JGGI has seen a dramatic turnaround in sentiment and, after reaching lows of close to a 16% discount in June 2016, the trust has spent the past two years consistently trading at a premium to NAV before the coronavirus-inspired sell-off saw it fall onto a discount.